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The management of Furrow Corporation is considering dropping product LOTH. Data from the company's budget for the upcoming year appear below: Variable expenses Fixed manufacturing
The management of Furrow Corporation is considering dropping product LOTH. Data from the company's budget for the upcoming year appear below: Variable expenses Fixed manufacturing expenses Fixed Belling and administrative ex $830,000 3365.000 $291.000 $166,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $186.000 or the fixed manufacturing expenses and $106.000 of the fixed selling and administrative experwes are svoldable prodLOTE is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be Multiple Choice C $173,000
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